Income less than 60 million won, household income less than 180%
Available from June next year to the end of 2025
Up to 700,000 won per month can be saved, 5-year mandatory subscription
A commercial bank window in Yeouido, Seoul. Reporter Kwon Do-hyun
The introduction of the ‘youth drug account’, which was President Yoon Seok-yeol’s presidential campaign pledge to support the youth, was confirmed. If you save up to 700,000 won per year for 5 years, you can collect 50 million won by applying government support and tax exemption.
Looking at the Restriction of Special Taxation Act, which was revised the previous day (23rd) at the National Assembly on the 24th, a new provision was established to grant special taxation when opening a Youth Leap Account.
Under the law, the Youth Leap Account is defined as a “product for which the government pays matching subsidies for the savings of young people.” The Financial Services Commission said in a reference material that day, “Young people between the ages of 19 and 34 with an individual income of less than 60 million won and a household income of less than 180% of the median income will be able to join.” More specific requirements for membership will be determined and disclosed in the future.
The payment limit is 8.4 million won per year (up to 700,000 won per month), and you must sign up for 5 years to receive government matching support. In the case of early termination without completing the five-year mandatory subscription period, the tax reduction and exemption amount will be additionally collected and the benefits will be reduced. Subscriptions to the Youth Leap Account will be accepted from June next year to December 31, 2025.
Government support is carried out in a way that the government bears the profit and loss generated from the account, and tax-free on interest and dividend income when the account is terminated. The government’s matching support is estimated to be around 6% of the deposit amount. The government plans to use the amount collected through the leap account as a support fund following making a profit by operating it as deposits and savings accounts, funds, and domestic listed stocks.
